Pre-Paid Card Transaction Computer to Load A Loan On A Pre-Paid Card

ABSTRACT

A loan transaction for a pre-paid card is approved for a borrower so that release of the loan proceeds is pending an activation of a pre-paid card. A financial institution computer converts loan data to be compatible with a prepaid card processor. The prepaid card processor activates a pre-paid card account responsive to an activation request on behalf of the borrower. The financial institution computer releases the pending loan proceeds to the pre-paid card processor so that the loan proceeds are released to the borrower and are immediately available to thereby convert the pre-paid card into a loan delivery apparatus.

RELATED APPLICATIONS

This application claims priority to and the benefit to U.S. patentapplication Ser. No. 12/465,803 by Galit et al., titled “Pre-paid CardTransaction Computer to Load a Loan on a Pre-Paid Card” filed May 14,2009, which claims priority and the benefit to U.S. Provisional PatentApplication Ser. No. 61/053,056, by Galit et al., titled “System,Program Product, and Method for Loading a Loan on a Pre-Paid Card” filedMay 14, 2008, which is incorporated herein by reference in its entirety.This application also relates to: U.S. Provisional Patent ApplicationSer. No. 61/016,213, by Sorbe et al., titled “Transfer Account Systems,Computer Program Products, and Associated Methods” filed on Dec. 21,2007; U.S. Provisional Patent Application Ser. No. 61/052,454, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andMethods to Prioritize Payments from Preselected Bank Account” filed May12, 2008; U.S. Provisional Patent Application Ser. No. 61/029,975, bySorbe et al., titled “Methods To Advance Loan Proceeds On Prepaid Cards,Associated Systems and Computer Program Products” filed on Feb. 20,2008; U.S. Provisional Patent Application Ser. No. 61/042,612, by Ahlerset al., titled “System, Program Product, and Associated Methods toAuthorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 4, 2008; U.S. Provisional Patent Application Ser. No. 61/042,624,by Crowe et al., titled “System, Program Product, and Method toAuthorize Draw for Retailer Optimization” filed on Apr. 4, 2008; U.S.Provisional Patent Application Ser. No. 61/032,750, by Ahlers et al.,titled “Methods, Program Product, and System for Micro-Loan Management”filed on Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.61/060,559, by Galit et al., titled “Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Jun. 11, 2008; U.S.Provisional Patent Application Ser. No. 61/082,863, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Jul. 23, 2008, all of which are eachincorporated herein by reference in their entireties. This applicationalso relates to: U.S. patent application Ser. No. 12/338,365, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andAssociated Computer-Implemented Methods” filed on Dec. 18, 2008; U.S.patent application Ser. No. 12/338,402, by Sorbe et al., titled“Transfer Account Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. 12/417,199, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on Apr. 2, 2009, which is no. U.S. Pat. No.8,065,187; U.S. patent application Ser. No. 12/417,211, by Ahlers etal., titled “System, Program Product, and Associated Methods toAuthorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 2, 2009, which is U.S. Pat. No. 8,069,085; PCT/US09/39492, byAhlers et al., titled “System, Program Product, and Associated Methodsto Authorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 3, 2009; PCT/US09/39504, by Ahlers et al., titled “System, ProgramProduct, and Associated Methods to Authorize Draw for Micro-CreditAttached to a Prepaid Card” filed on Apr. 3, 2009; U.S. patentapplication Ser. No. 12/417,182, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 2, 2009; PCT/US09/39512, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 3, 2009; U.S. patent application Ser. No. 12/338,684, byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 18, 2008;PCT/US08/87660 by Ahlers et al., titled “Computer-Implemented Methods,Program Product, and System for Micro-Loan Management” filed on Dec. 19,2008; U.S. patent application Ser. No. 12/338,712, by Galit et al.,titled “Computer-Implemented Methods, Program Product, and System toEnhance Banking Terms Over Time” filed on Dec. 18, 2008; PCT/US08/87689by Galit et al., titled “Computer-Implemented Methods, Program Product,and System to Enhance Banking Terms Over Time” filed on Dec. 19, 2008;U.S. patent application Ser. No. 12/417,162, by Ahlers et al., titled“System, Program Product, and Method For Debit Card and Checking AccountAutodraw” filed on Apr. 3, 2009; PCT/US09/39495, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Apr. 3, 2009; U.S. patent application Ser.No. 12/465,277, by Galit et al., titled “System, Program Product, andComputer-Implemented Method for Loading a Loan on a Pre-Paid Card” filedon May 13, 2009; and U.S. patent application Ser. No. 12/465,306, byGalit et al., titled “System, Program Product, and Computer-ImplementedMethod for Loading a Loan on an Existing Pre-Paid Card” filed on May 13,2009, all of which are each incorporated herein by reference in theirentireties.

BACKGROUND

1. Field of Invention

The present invention relates generally to the financial service andbanking product industries, and, more particularly, to systems, computerprogram products, and associated methods of providing loan proceeds to apre-paid card.

2. Background

It is recognized that non-traditional short-term lending, including,e.g., payday loans, payday advances, and other short-term cash advances,is an over $20 billion per year industry. Non-traditional loans,however, involve delays and hassles associated with applying for andobtaining the loan prior to the consumer having access to the funds.

In a retail environment, such as a bank branch or a payday loan store,consumers must travel to their location of choice, apply for the loan,and then wait for a decision from the lender. In some cases, thedecision is immediate and the consumer is able to leave the retaillender with funds in hand—usually in the form of a negotiableinstrument, e.g., a check. In other cases, the decision requires enoughtime to elapse that the funding takes place on a later date, which mayrequire the consumer to make a second trip to the retail lender toreceive proceeds. Both scenarios are inconvenient and costly to theconsumer given the time commitment, travel costs (i.e., gas), and thecosts of cashing the instrument used to fund the loan. The system isparticularly inefficient for return customers whose credit record isalready known and who are essentially pre-approved for future borrowingbased on past performance. These customers find themselves traveling tothe retail lender primarily just to pick up a loan check. The customertypically cashes the check at another location and only then uses theproceeds.

While less common today with the explosion of Internet-based lending,applying for credit by mail or by telephone is still the most popularmeans by which consumers obtain credit cards. Here, the consumerforwards application information to the lender. Once received, thelender underwrites and makes the credit decision. If approved, thelender must order a credit card with the consumers personalizedinformation (name and account number on the card). This process can taketwo to six weeks in most cases, and as a result, is inconvenient at bestand useless at worst, especially for consumers in need of loan fundsimmediately.

Online payday lending, peer-to-peer (also known as person-to-person orP2P) lending, and even traditional bank lending has grown rapidly in thelast 8 to 10 years. The typical model involves a consumer submittingvarious pieces of personal information via a secure website that thelender will use to grant credit. In most cases, the decision to grantcredit is immediate (with the exception of P2P auction-style borrowing).The funding of the loan, however, is still delayed. In some cases, theconsumer can have loan proceeds deposited into a bank account via theAutomated Clearing House (ACH). As understood by those skilled in theart, Automated Clearing House (ACH) is the name of an electronic networkfor financial transactions in the United States, regulated by theFederal Reserve. Alternately, the funds are delivered to the customerthrough the mail, usually in the form of a negotiable instrument, suchas a check. For those applying for credit cards, they must still wait toaccess the line of credit until their card arrives 2 to 6 weeks later.

It is known that access to proceeds from a negotiable instrument, suchas a check, can be delayed for processing, i.e., waiting for the checkto clear, particularly when the proceeds check is drawn on a non-localbank. In addition, such access can generate fees; e.g., a check-cashingfee.

SUMMARY OF INVENTION

In view of the foregoing, Applicants have recognized one or more sourcesof many of these problems and provides enhanced embodiments of methods,e.g., computerized methods, of loading loan proceeds to a pre-paid card,and associated systems and computer program products. According to anembodiment of the present invention, a bank receives authorization froma lender to credit loan proceeds from the lender to an approved borroweron a pre-paid card issued by or associated with a pre-paid cardprocessor so that release of the loan proceeds is pending an activationof a pre-paid card. Next, the bank receives notice of an activation of apre-paid card issued by or associated with the pre-paid card processorresponsive to an activation request on behalf of the approved borrower.Then the bank credits the pending loan proceeds to the pre-paid cardprocessor for the activated pre-paid card so that the loan proceeds arereleased to the approved borrower and are immediately available.

According to another embodiment of the present invention, a bankreceives authorization from a lender to credit loan proceeds from thelender to an approved borrower on an existing pre-paid card issued by orassociated with the pre-paid card processor. Then the bank credits theloan proceeds relatively instantaneously to the pre-paid card processorfor the existing pre-paid card so that the loan proceeds are released tothe approved borrower and are immediately available.

Other embodiments of the present invention include determining whetherthe borrower has an existing pre-paid card capable of accepting the loanproceeds. As part of the loan approval process, for example, a borrowercan be asked to provide existing pre-paid information to the lender. Thelender can ask the bank to verify that an existing pre-paid card iscapable of accepting the loan proceeds. In addition, the lender can askthe bank to suggest an existing pre-paid card associated with theborrower to accept the loan proceeds. Alternately, the bank candetermine that a new pre-paid card is necessary.

To borrowers, benefits of the embodiments of the present inventioninclude convenience of time and place. The convenience of time includesbeing able to access loan proceeds immediately after the activation of apre-paid card, without waiting two to six weeks for the arrival of acustomized credit card and without the delays, hassles, and costassociated with handling a negotiable instrument, such as, for example,a check. In addition, if the borrower already has a pre-paid card fromthe pre-paid card processor, the convenience of time includes havingaccess to loan proceeds through the pre-paid card relativelyimmediately. Also, the embodiments of the present invention, forexample, can be implemented around the clock, 24 hours a day, onweekends and holidays, outside of traditional banking hours and evenoutside of typical extended retailer hours of a payday advance lender.The convenience of place includes being able to access loan proceeds at,for example, thousands of locations nationwide where pre-paid cards aresold. In addition, if the borrower already has a pre-paid card from thepre-paid card processor, the convenience of place includes the borrowerbeing able to apply for a loan and access the loan proceeds over thephone or Internet, without needing to go anywhere.

To lenders, benefits of the embodiments of the present invention includethe ability to distribute loan proceeds quickly and electronically,without the need for an expensive bricks-and-mortar presence. Thefeatures of the embodiments of the present invention enable lenders toattract new customers and expand into new markets, both geographicallyand demographically. For example, under embodiments of the presentinvention, a traditional regional lender can now operate nationwide. Forexample, under embodiments of the present invention, traditional lenderscan now compete directly with payday lenders in terms ofconvenience—without having to expand their retail presence.

Embodiments of the present invention include a system of loading loanproceeds to a pre-paid card. The system includes a bank computercommunicating through an electronic communications network with a lendercomputer. The lender computer is positioned to approve a loan requestfrom a borrower and authorize the bank computer to credit proceeds of aloan on a pre-paid card. The system also includes a pre-paid cardprocessor computer in communication with the bank computer through anelectronic communications network. The pre-paid card processor computeris positioned to notify the bank computer of an activation of a pre-paidcard. The system further includes a computer program product associatedwith the bank computer, stored on a tangible computer memory media, andoperable on a computer, the computer program product comprising a set ofinstructions that, when executed by the computer, cause the computer toperform various operations. The operations can include receivingauthorization by the bank computer from the lender computer to creditloan proceeds from the lender to the approved borrower on a pre-paidcard issued by or associated with the pre-paid card processor so thatrelease of the loan proceeds is pending an activation of a pre-paidcard. The operations can also include receiving notice of an activationof a pre-paid card issued by or associated with the pre-paid cardprocessor responsive to an activation request on behalf of the approvedborrower and crediting the pending loan proceeds by the bank computer tothe pre-paid card processor for the activated pre-paid card so that theloan proceeds are released to the approved borrower and are immediatelyavailable.

Embodiments of the present invention include a computer program product,stored on a tangible computer memory media, operable on a computer, thecomputer program product comprising a set of instructions that, whenexecuted by the computer, cause the computer to perform variousoperations. The operations include receiving authorization by a bankfrom a lender to credit loan proceeds from the lender to an approvedborrower on a pre-paid card issued by or associated with a pre-paid cardprocessor so that release of the loan proceeds is pending an activationof a pre-paid card. The operations further include receiving notice ofan activation of a pre-paid card issued by or associated with thepre-paid card processor responsive to an activation request on behalf ofthe approved borrower. The operations also include crediting the pendingloan proceeds by the bank to the pre-paid card processor for theactivated pre-paid card so that the loan proceeds are released to theapproved borrower and are immediately available.

In addition, embodiments of the present invention include systems,program products, and associated methods of loading loan proceeds to apre-paid card as will be understood by those skilled in the art.

BRIEF DESCRIPTION OF DRAWINGS

So that the manner in which the features and benefits of the invention,as well as others which will become apparent, may be understood in moredetail, a more particular description of the invention brieflysummarized above may be had by reference to the embodiments thereofwhich are illustrated in the appended drawings, which form a part ofthis specification. It is also to be noted, however, that the drawingsillustrate only various embodiments of the invention and are thereforenot to be considered limiting of the invention's scope as it may includeother effective embodiments as well.

FIG. 1 is a schematic diagram of loading loan proceeds on a pre-paidcard according to an embodiment of the present invention;

FIG. 2 is a schematic diagram of loading loan proceeds on a pre-paidcard according to an embodiment of the present invention;

FIG. 3 is a schematic diagram of loading loan proceeds on a pre-paidcard according to an embodiment of the present invention;

FIG. 4 is a schematic diagram of loading loan proceeds on a pre-paidcard according to an embodiment of the present invention;

FIG. 5 is a schematic block diagram of a system of loading loan proceedson a pre-paid card according to an embodiment of the present invention;

FIG. 6 is a flow diagram of a method of loading loan proceeds on apre-paid card according to an embodiment of the present invention;

FIG. 7 is a flow diagram of another method of loading loan proceeds on apre-paid card according to another embodiment of the present invention;

FIG. 8 is a schematic diagram of a computer server having a computerprogram product stored in memory thereof according to an embodiment ofthe present invention;

FIG. 9 is a schematic diagram of another computer server having anothercomputer program product stored in memory thereof according to anotherembodiment of the present invention;

FIG. 10 is a schematic diagram of a computer program product accordingto an embodiment of the present invention;

FIG. 11 is respective front and back plan views of a prepaid cardaccording to an embodiment of the present invention according to anembodiment of the present invention.

FIG. 12 is a flow diagram of a method of loading loan proceeds on apre-paid card according to an embodiment of the present invention;

FIG. 13 is a schematic diagram of a computer server having a computerprogram product stored in memory thereof according to an embodiment ofthe present invention;

FIG. 14 is a table illustrating method availability by prepaid cardprocessor according to an embodiment of the present invention; and

FIG. 15 is a schematic block diagram of a computer having a computerreadable medium according to another embodiment of the presentinvention.

DETAILED DESCRIPTION

The present invention will now be described more fully hereinafter withreference to the accompanying drawings, which illustrate embodiments ofthe invention. This invention may, however, be embodied in manydifferent forms and should not be construed as limited to theillustrated embodiments set forth herein; rather, these embodiments areprovided so that this disclosure will be thorough and complete, and willfully convey the scope of the invention to those skilled in the art.Like numbers refer to like elements throughout.

Applicant has identified that the different interfaces of the existingprepaid card processors are a source of problems with advancing loanproceeds on a scalable volume of prepaid cards. For example, asillustrated in FIG. 15, these different interfaces can add complexityand can needlessly limit the ability of a lender to make loans widelyavailable to customers with prepaid cards. Note that no two prepaid cardprocessors provide the same method availability, and that no prepaidcard processor supports every method. An interface is defined as aboundary across which two systems interact or communicate, including thesoftware codes and data formats that applications use to communicate, asunderstood by those skilled in the art. From a customer's point of view,it is desirable to be able to apply for a loan and have access to theproceeds without having to collect the loan proceeds in person.Likewise, lenders would like to be able to offer loans and advance theproceeds conveniently, without concerning retail space for the deliveryof the proceeds. Also from a customer's point of view, it is desirablefor multiple lenders to be able to compete for the customer's business.From a lender's perspective, it is desirable to be able to make a loanto anyone with a loadable prepaid card, without regard to the specificprepaid card processor associated with the customer's prepaid card.Moreover, it is desirable from a lender's perspective to post loanproceeds through multiple prepaid card processors, yet mask thecomplexity of interacting with various interfaces by utilizing a single,common interface. In addition to broadening the market of lenders toprepaid card accounts, the results of a common interface are reducederror rates and training costs. In view of the foregoing, Applicantprovides computer-implemented methods to advance loan proceeds onprepaid cards, and associated systems and computer program products.

Embodiments of the present invention provide various systems, programproducts, and methods, e.g., computerized methods, of loading a loan ona pre-paid card. According to an embodiment of the present invention, abank, i.e., a bank computer, receives authorization from a lender, i.e.,a lender computer, to credit loan proceeds from the lender to anapproved borrower on a pre-paid card issued by or associated with apre-paid card processor so that release of the loan proceeds is pendingan activation of a pre-paid card. Next, the bank computer receivesnotice of an activation of a pre-paid card issued by or associated withthe pre-paid card processor responsive to an activation request onbehalf of the approved borrower. Then the bank computer credits thepending loan proceeds to the pre-paid card processor, i.e., a pre-paidprocessor computer, for the activated pre-paid card so that the loanproceeds are released to the approved borrower and are immediatelyavailable to thereby convert the pre-paid card into a loan deliveryapparatus. Advantageously, the loan request and authorization processcan occur over the Internet or through a telephone conversation, and thepre-paid card can be purchased at, for example, numerous retail outlets.An activation request for the pre-paid card can include, for example,the retailer or the borrower as understood by those skilled in the art.

According to another embodiment of the present invention, a bankcomputer receives authorization from a lender computer to credit loanproceeds from the lender to an approved borrower on an existing pre-paidcard issued by or associated with the pre-paid card processor. Then thebank computer credits the loan proceeds relatively instantaneously tothe pre-paid card processor computer for the existing pre-paid card sothat the loan proceeds are released to the approved borrower and areimmediately available. Advantageously, the loan request andauthorization process can occur over the Internet or through a telephoneconversation, resulting in loan proceeds being immediately availablewithout delays or the borrower having to travel to a retail lender.

Embodiments of pre-paid card processors include, for example, entitiesthat manage pre-paid card accounts and related transactions, includingon behalf of banks and other financial institutions. Embodiments ofpre-paid card processors can provide, for example, services for thedevelopment, processing and administration of stored value programs,including account origination and management; authorization andsettlement processing; and fraud, risk and compliance management.Embodiments of pre-paid card processors can provide, for example, accessto accounts and funds transfer through point-of-sale systems, automatedteller machines (ATMs), the Internet, Automated Clearing House (ACH)debit, and others as understood by those skilled in the art. Embodimentsof pre-paid card processors can operate, for example, data centers,computers, servers, software, databases, and related communicationinfrastructure. As understood by those skilled in the art, examples ofembodiments of pre-paid card processors can include, but are not limitedto, FDR, FSV, Galileo, Symmetrex, and TSYS prepaid card processors, forexample. First Data Corporation, formerly First Data Resources, (FDR) isa transaction processing company, including pre-paid cards, and isheadquartered in Greenwood Village, Colo., as understood by thoseskilled in the art. FSV Payment Systems, Inc. (FSV) provides pre-paidtechnology and stored value processing and is headquartered in Houston,Tex., as understood by those skilled in the art. Galileo Processing,Inc. (Galileo) is a privately held, financial payment processing companybased out of Salt Lake City, Utah, as understood by those skilled, inthe art. Symmetrex, Inc. (Symmetrex) is a transaction processing companyand a large pre-paid card processor in the United States, located inMaitland, Fla., as understood by those skilled in the art. Withheadquarters located in Columbus, Georgia, Total System Services, Inc.(TSYS) provides electronic payment services to financial institutionsand companies, including consumer-finance, credit, debit, healthcare,loyalty, prepaid, chip and mobile payments, as understood by thoseskilled in the art.

As illustrated in FIGS. 1 and 6, embodiments of the present inventionprovide, for example, for a method, e.g., a computer-implemented method,100, 600 of loading loan proceeds to a pre-paid card. Thecomputer-implemented method includes a borrower 105 requesting a loan111 from a lender 107 and the lender 107 approving the loan 113 to theborrower 105. As part of the loan approval process, the lender 107 cancommunicate with the bank 101 to check for a pre-paid card 112 for theborrower to either suggest or verify an existing pre-paid card for theborrower 105 or determine that a new pre-paid card is necessary. Next,the computer-implemented method 100, 600 includes the bank receivingauthorization in a first computer process from the lender to credit loanproceeds from the lender 107 to the approved borrower 105 on a pre-paidcard issued by or associated with the pre-paid card processor 103 sothat release of the loan proceeds is pending an activation of a pre-paidcard 115, 603. The computer-implemented method can also include theborrower 105 purchasing a pre-paid card from a retailer. The method alsoincludes the borrower 105 (or the retailer or other entity on behalf onthe borrower 105) requesting activation of the pre-paid card 117 by thepre-paid card processor 103. The computer-implemented method 100, 600includes the bank 101 receiving in a second computer process notice ofan activation of a pre-paid card issued by or associated with thepre-paid card processor responsive to an activation request on behalf ofthe approved borrower 119, 605. The computer-implemented method 100, 600includes the bank crediting the pending loan proceeds in a thirdcomputer process to the pre-paid card processor for the activatedpre-paid card responsive to the received authorization from the firstcomputer process and the received notice of activation from the secondcomputer process so the loan proceeds are released to the approvedborrower and are immediately available 121, 607 to thereby convert thepre-paid card into a loan delivery apparatus. The method includes thepre-paid card processor 103 posting the loan proceeds to the pre-paidcard 123 as understood by those skilled in the art. The method can alsoinclude generating one or more fees for the bank for crediting thepending loan proceeds to the pre-paid card processor for the activatedpre-paid card 609. The generated fees are to be paid by the lender 107,the approved borrower 105, or both.

According to other embodiments of the present invention, loan proceedsare available to the approved borrower 105 through the pre-paid cardafter a delay of one-half of one second to one minute after receivingnotice of the activation of the pre-paid card. That is, embodiments ofthe present invention impose a delay having a range of between one-halfof one second and one minute. This delay can include the network delaysand processing delays on and between the various computers.

According to other embodiments of the present invention, the notice ofthe activation of the pre-paid card issued by or associated with thepre-paid card processor includes information identifying the approvedborrower 105 and the pre-paid card 50 (see, e.g., FIG. 11). Pre-paidcards 50 typically include a unique 16-digit account number 54 asunderstood by those skilled in the art. The notice of the activation ofthe pre-paid card from the pre-paid card processor provides the bankwith information identifying the pre-paid card, e.g., the 16-digit cardnumber or account number, and information identifying the approvedborrower, e.g., the name of the borrower, social security number,address, or other information as understood by those skilled in the artso that the bank can match the pending loan proceeds to the newlyactivated pre-paid card. In addition, the notice of the activation ofthe pre-paid card can include a flag, or other designation as understoodby those skilled in the art, that the cardholder requested theactivation of the pre-paid card in order to access pending loanproceeds.

As illustrated in FIG. 2, the lender and the bank 201 can be the samefinancial institution or affiliated financial institutions. That is,rather than acting as an intermediary between a lender and the pre-paidcard processor, the bank 201 can approve loans 213, authorize the creditof loan proceeds to an approved borrower on a pre-paid card, receivenotice of an activation of a pre-paid card 219, and credit the pendingloan proceeds to the pre-paid card processor for the activated pre-paidcard so that the loan proceeds are released to the approved borrower andare immediately available 221. Thus, a bank 201, acting as a lender, canapprove a loan and wait for an activation of a pre-paid card to creditthe pending loan proceeds, according to embodiments of the presentinvention. That is, the bank computer converts loan request data fromthe borrower into a value associated with the pre-paid card. In otherembodiments, the bank and the pre-paid card processor can be the samefinancial institution or affiliated financial institutions so that thebank computer is positioned to approve or reject a transaction using theloan proceeds on the pre-paid card as payment as understood by thoseskilled in the art. That is, the bank computer can convert loan datainto transaction data responsive to a card reader device reading datafrom the prepaid card and modifying the data to include point of saledata.

As illustrated in FIGS. 3 and 7, embodiments of the present inventionprovide, for example, for another computer-implemented method 300, 700of loading loan proceeds to a pre-paid card. The computer-implementedmethod 300, 700 includes a pre-paid card processor 303 issuing andactivating a pre-paid card 310 to a borrower 305. As understood by thoseskilled in the art, these steps can occur significantly before, e.g.,years before, the remaining steps in the method. Thecomputer-implemented method further includes the borrower 305 requestinga loan 311 from a lender 307 and the lender 307 approving the loan 313to the borrower 305. Next, the computer-implemented method 300, 700includes the bank 301 receiving authorization from the lender 307 tocredit loan proceeds from the lender 307 to the approved borrower 305 onan existing pre-paid card issued by or associated with the pre-paid cardprocessor 303 so that release of the loan proceeds is pending anactivation of a pre-paid card 315, 703. The computer-implemented method300, 700 then includes the bank 301 crediting the loan proceeds to thepre-paid card processor for the existing pre-paid card so that the loanproceeds are released to the approved borrower and are immediatelyavailable 321, 705. The computer-implemented method includes thepre-paid card processor 303 posting the loan proceeds to the pre-paidcard 323 as understood by those skilled in the art. The method can alsoinclude generating one or more fees for the bank for crediting thepending loan proceeds to the pre-paid card processor for the existingpre-paid card 707. The generated fees are to be paid by the lender 307,the approved borrower 305, or both.

According to other embodiments of the present invention, loan proceedsare available to the approved borrower 305 through the pre-paid card 50after a delay of one-half of one second to one minute after receivingauthorization by the bank from the lender to credit loan proceeds fromthe lender to the approved borrower on the existing pre-paid card. Thatis, embodiments of the present invention impose a delay having a rangeof between one-half of one second and one minute. This delay can includethe network delays and processing delays on and between the variouscomputers.

According to other embodiments of the present invention, theauthorization received by the bank includes information identifying theexisting pre-paid card 50, such as, e.g., the unique 16-digit cardnumber or account number 54. This identifying information allows thebank to match the pending loan proceeds to the existing pre-paid card asunderstood by those skilled in the art. According to embodiments of thepresent invention, this pre-paid card information can originate with theborrower or from a suggestion by the bank as part of the loan requestprocess as understood by those skilled in the art.

As illustrated in FIG. 4, the lender and the bank 301 can be the samefinancial institution or affiliated financial institutions. That is,rather than acting as an intermediary between a lender and the pre-paidcard processor 403, the bank 401 can approve loans 413, authorize thecredit of loan proceeds to an approved borrower on an existing pre-paidcard, and credit the loan proceeds to the pre-paid card processor forthe existing pre-paid card so that the loan proceeds are released to theapproved borrower and are immediately available 421. Accordingly, thebank computer can converts loan request data from the borrower into avalue associated with the pre-paid card. In other embodiments, the bankand the pre-paid card processor can be the same financial institution oraffiliated financial institutions so that the bank computer ispositioned to approve or reject a transaction using the loan proceeds onthe pre-paid card as payment as understood by those skilled in the art.That is, the bank computer can convert loan data into transaction dataresponsive to a card reader device reading data from the prepaid cardand modifying the data to include point of sale data.

As illustrated in FIG. 12, embodiments of the present invention include,for example, a computer-implemented method of loading loan proceeds to apre-paid card. The computer-implemented method can include activating bya computer associated with a pre-paid card processor computer defining apre-paid card processor computer in a first computer process a pre-paidcard responsive to an activation request on behalf of a borrower 753.The computer-implemented method can include transmitting to a bankcomputer by the pre-paid card processor computer in a second computerprocess notice of an activation of a pre-paid card associated with thepre-paid card processor responsive to an activation of the pre-paid cardfrom the first computer process 755. The computer-implemented method caninclude loading pending loan proceeds in a third computer process by thepre-paid card processor computer to a pre-paid card responsive to thebank computer crediting the pending loan proceeds to the pre-paid cardprocessor computer for the activated pre-paid card so that the loanproceeds are released to the approved borrower and are immediatelyavailable to thereby convert the pre-paid card into a loan deliveryapparatus 757. The operation of loading pending loan proceeds by thepre-paid card processor computer to a pre-paid card can also includechanging a physical structure of the pre-paid card, e.g., a magneticstripe 58, to reflect a presence of funds sufficient up to a specifiedamount for purchase of goods or services.

To borrowers, benefits of the embodiments of the present inventioninclude convenience of time and place. The convenience of time includesbeing able to access loan proceeds immediately after the activation of apre-paid card, without waiting two to six weeks for the arrival of acustomized credit card and without the delays and hassles associatedwith handling a negotiable instrument, such as, for example, a check. Inaddition, if the borrower already has a pre-paid card from the pre-paidcard processor, the convenience of time includes having access to loanproceeds through the pre-paid card relatively immediately. Also, theembodiments of the present invention, for example, can be implementedaround the clock, 24 hours a day, on weekends and holidays, outside oftraditional banking hours and even outside of typical extended retailerhours of a payday advance lender. The convenience of place includesbeing able to access loan proceeds at thousands of locations nationwidewhere pre-paid cards are sold. In addition, if the borrower already hasa pre-paid card from the pre-paid card processor, the convenience ofplace includes the borrower being able to apply for a loan and accessthe loan proceeds over the phone or Internet, without needing to goanywhere.

To lenders, benefits of the embodiments of the present invention includethe ability to distribute loan proceeds quickly and electronically,without the need for an expensive bricks and mortar presence. Thefeatures of the embodiments of the present invention enable lenders toattract new customers and expand into new markets, both geographicallyand demographically.

According to other embodiments of the present invention, the approvedborrower purchases the pre-paid card issued by or associated with thepre-paid card processor at a retailer. Therefore, thousands oflocations, for example, can be available for the borrower to obtain apre-paid card issued by or associated with the pre-paid card processoras understood by those skilled in the art.

According to other embodiments of the present invention, the approvedborrower and the lender have no business relationship prior to the loantransaction including the authorization from the lender to credit loanproceeds to the approved borrower. Therefore, embodiments of the presentinvention provide for a first-time borrower, or a borrower using alender for the first time, as understood by those skilled in the art.That is, no pre-existing relationship, prior to the loan, is necessary.

Therefore, embodiments of the present invention feature numerousconvenient approaches to request a loan or activate a pre-paid card.According to embodiments of the present invention, for example,receiving authorization by a bank from a lender to credit loan proceedsfrom the lender to an approved borrower on a pre-paid card issued by orassociated with a pre-paid card processor is responsive to a loanrequest by the borrower using one or more of the following: Internettechnology, a touchtone telephone, a secure website, a telephoneconversation with an interactive voice response unit (IVRU), a telephoneconversation with a customer service representative, and a mobile phone.According to other embodiments of the present invention, for example,the activation of a pre-paid card issued by or associated with thepre-paid card processor responsive to an activation request from theapproved borrower includes using one or more of the following: Internettechnology, a touchtone telephone, a secure website, a telephoneconversation with an interactive voice response unit (IVRU), a telephoneconversation with a customer service representative, and a mobile phone.

According to other embodiments of the present invention, the bank andthe pre-paid card processor can be the same financial institution oraffiliated financial institutions. That is, a bank can issue and managepre-paid cards. According to other embodiments of the present invention,the bank can be a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations. As understood by those skilled in the art, afederally-chartered financial institution can operate in every statewith a consistent implementation nationally rather than a state-by-stateapproach.

As illustrated in FIG. 5, embodiments of the present invention include asystem 500 of loading loan proceeds to a pre-paid card. The system 500can include a computer associated with a bank 501 defining a bankcomputer 502. The bank computer 502 can include, for example, a display503; memory 504, such as, computer readable media; one or moreprocessors 505, and input-output I/O devices, e.g., an input/output unit506. The memory 504 of the bank computer 502 can include program product507 as described herein. The system 500 can include a computerassociated with a lender 511 defining a lender computer 512. The lendercomputer 512 can include, for example, memory 514, such as, computerreadable media; one or more processors 515, and input-output I/Odevices, e.g., an input/output unit 516. The memory 516 of the lendercomputer 502 can include program product to receive loan requests andborrower data; to approve (or reject) loans; and to communicate to thebank computer 502. The system 500 can include a computer associated witha lender 511 defining a lender computer 512. The lender computer 512 caninclude, for example, memory 514, such as, computer readable media; oneor more processors 515, and input-output I/O devices, e.g., aninput/output unit 516. The lender computer 512 can be in communicationwith the bank computer 502 through an electronic communications network551 and positioned to approve a loan request from a borrower 521 and toauthorize the bank computer 502 to credit proceeds of the loan on apre-paid card 50. The system 500 can include a computer associated witha pre-paid card processor 531 defining a pre-paid card processorcomputer 532. The pre-paid card processor computer 532 can include, forexample, memory 534, such as, computer readable media; one or moreprocessors 535, and input-output I/O devices, e.g., an input/output unit536. The pre-paid card processor computer 532 can include programproduct 538 as described herein (see, e.g., FIG. 13) and a pre-paid cardaccount 537 as understood by those skilled in the art. The pre-paid cardprocessor computer 532 can be in communication with the bank computer502 through an electronic communications network 551 and positioned tonotify the bank computer 502 of an activation of a pre-paid card 50.

The system 500 further includes program product 507 associated with thebank computer 502, stored on a tangible computer memory media 504, andoperable on a computer, the program product comprising a set ofinstructions that, when executed by the computer, cause the computer toperform various operations. According to an embodiment of the presentinvention, the operations include receiving authorization by the bankcomputer 502 from the lender computer 512 to credit loan proceeds fromthe lender 511 to the approved borrower 521 on a pre-paid card 50 issuedby or associated with the pre-paid card processor 531 so that release ofthe loan proceeds is pending an activation of a pre-paid card. Theoperations further include receiving notice of an activation of apre-paid card issued by or associated with the pre-paid card processorcomputer 532 responsive to an activation request on behalf of theapproved borrower 521. The operations also include crediting the pendingloan proceeds by the bank computer 502 to the pre-paid card processor531 for the activated pre-paid card so the loan proceeds are released tothe approved borrower 521 and are immediately available to therebyconvert the pre-paid card into a loan delivery apparatus. According toanother embodiment of the present invention, the operations includereceiving authorization by the bank computer 502 from the lendercomputer 512 to credit loan proceeds from the lender 511 to the approvedborrower 521 on an existing pre-paid card 50 issued by or associatedwith the pre-paid card processor 531, and crediting the loan proceedsrelatively instantaneously by the bank computer 502 to the pre-paid cardprocessor computer 532 for the existing pre-paid card so that the loanproceeds are released to the approved borrower 521 and are immediatelyavailable.

The system 500 can also include a computer associated with a borrower521 defining a borrower computer 522. The borrower computer 522 caninclude, for example, a display 523; memory 524, such as, computerreadable media; one or more processors 525; and input-output I/Odevices, e.g., an input/output unit 526. The borrower computer 522 caninclude an Internet browser 527 as understood by those skilled in theart, a computer application used for accessing sites or information on anetwork. The borrower computer 522 can be positioned to request a loanfrom the lender computer 512, communicating through the electroniccommunications network 551.

As illustrated in FIG. 8, embodiments of the present invention include,for example, a computer program product 800, stored on a tangiblecomputer memory media 803, operable on a computer 801, the computerprogram product 800 comprising a set of instructions 805 that, whenexecuted by the computer, cause the computer to perform variousoperations. The operations can include receiving authorization by a bankcomputer from a lender computer to credit loan proceeds from the lenderto an approved borrower on a pre-paid card issued by or associated witha pre-paid card processor so that release of the loan proceeds ispending an activation of a pre-paid card 807. The operations can furtherinclude receiving by the bank computer notice of an activation of apre-paid card issued by or associated with the pre-paid card processorresponsive to an activation request on behalf of the approved borrower809. The operations can also include crediting the pending loan proceedsby the bank computer to the pre-paid card processor computer for theactivated pre-paid card so that the loan proceeds are released to theapproved borrower and are immediately available 811 to thereby convertthe pre-paid card into a loan delivery apparatus. The operations canalso include generating one or more fees for the bank for crediting thepending loan proceeds to the pre-paid card processor for the activatedpre-paid card 813.

As illustrated in FIG. 9, embodiments of the present invention include,for example, a computer program product 900, stored on a tangiblecomputer memory media 903, operable on a computer 901, the computerprogram product 900 comprising a set of instructions 905 that, whenexecuted by the computer, cause the computer to perform variousoperations. The operations can include receiving authorization by a bankcomputer from a lender computer to credit loan proceeds from the lenderto an approved borrower on an existing pre-paid card issued by orassociated with a pre-paid card processor 907. The operations canfurther include crediting the loan proceeds relatively instantaneouslyby the bank computer to the pre-paid card processor computer for theexisting pre-paid card so that the loan proceeds are released to theapproved borrower and are immediately available 909. The operations canalso include generating one or more fees for the bank for crediting theloan proceeds to the pre-paid card processor for the existing pre-paidcard 911.

Embodiments of the present invention provide, for example, a computerprogram product 1000 associated with a bank computer implemented inmodules or components, as illustrated in FIG. 10. A pre-paid cardinterface component 1001 of a computer program product 1000 can checkfor a pre-paid card for the borrower 1001 to either suggest or verify anexisting pre-paid card for the borrower or determine that a new pre-paidcard is necessary as part of the loan approval process. The pre-paidcard interface component 1001 can also receive and process notice of anactivation of a pre-paid card, including information identifying theapproved borrower and the pre-paid card 1003, and receive existingpre-paid card information 1004 as understood by those skilled in theart. In addition, a loan manager module 1011 can process authorizationsfrom lenders 1012, manage pending loan proceeds 1013, credit loanproceeds to a pre-paid card processor 1014 for an activated or existingpre-paid card, generate fees 1015, and other associated tasks asunderstood by those skilled in the art. Other architectures andorganizations will be understood by those skilled in the art to beincluded within the embodiments of the present invention. Computerprogram products can be implemented in a variety of software andprogramming languages, including without limitation hypertext markuplanguage (“HTML”), Java, C, C++, XML, and others as understood by thoseskilled in the art.

As illustrated in FIGS. 5 and 11, embodiments of the present inventioncan include, for example, a card 50, e.g., a prepaid card, and a cardreader device 541 associated with a retailer 540. As understood by thoseskilled in the art, a prepaid card 50 can have indicia 52, e.g., logos,slogans, source identifiers, of a financial institution, i.e., asponsoring bank and of a prepaid card processor; a serial number 54; andexpiration date 56. The structures of various types of specific cards,e.g., magnetic stripe 58, type of material, are well known to thoseskilled in the art and can be used with embodiments of the presentinvention. Typically, a pre-paid card 50 is formed from plastic and hasa magnetic stripe 58 affixed to the plastic through an application ofheat. Those skilled in the art will understand that other embodimentsbesides a magnetic stripe can include radio frequency identificationdevices (REID), smart chips, bar codes, and other similar devices.Embodiments of the present invention can include forming cards orreceiving cards already formed. The magnetic stripe card 50 can storeinformation, or data, e.g., account information, by modifying themagnetism of particles on the magnetic stripe 58 on the card. Theinformation can be read by swiping the card through a slot 544 past areading head of a card reader device 541. The card reader device 541 caninclude a display 542 and input/output I/O devices 543, e.g., a keypad.The card reader device 541 can be associated with a computer 545, e.g.,cash register or point-of-sale, having, for example, memory 548, suchas, computer readable media; one or more processors 547; andinput-output I/O devices, e.g., an input/output unit 546. Typically,there are two tracks of information on a magnetic card 50 used forfinancial transactions, known as tracks 1 and 2. In addition, a thirdtrack, known as track 3, can be available for magnetic stripe cards.Tracks 1 and 3, if available, are typically recorded at 210 bits perinch, while track 2 typically has a recording density of 75 bits perinch. Track 2, as typically encoded, was developed by the AmericanBankers Association (ABA) provides for 37 numeric data characters,including up to 19 digits for a primary account number (including a BankIdentification Number as understood by those skilled in the art), anexpiration date, a service code, and discretionary verification data,such as, a Personal Identification Number, or PIN. The information,e.g., data, on the card can be used, for example, to facilitate atransaction. For example, when the card 50 is swiped through a slot 544,the data on the magnetic stripe 58 is read and processed by the cardreader 541, converting data stored in the magnetic particles on the cardinto data associated with readers 541 and a bank computer 502. The cardreader 541 and associated computer 545 can then communicate through anelectronic communications network 551 to, for example, a pre-paid cardprocessor computer 532. The card reader 541 communicates the accountinformation, e.g., data, as read from the card, as well as other data,such as, an amount of a proposed transaction for approval from thecomputer 545, e.g., point-of-sale terminal. The other data, for example,can be entered by retailer personnel (e.g., an amount of thetransaction), the consumer (e.g., a PIN, or security code), or pre-paidcard processor personnel (e.g., a security approval). The pre-paid cardprocessor computer 532 can then utilize the account information andother data to authorize or reject a purchase by, for example,determining whether a proposed purchase by the consumer is less than anamount of funds remaining on the card. Moreover, optional securitymeasures, including, for example, a mismatch between a PIN supplied bythe consumer and a PIN stored on the card or in a database, can resultin the rejection of a proposed transaction. The pre-paid card processorcomputer 532 then perform certain functions, including responding to theauthorization request so that a point of sale displays an indication ofapproval or rejection, resulting in a visual depiction to a merchant ofthe approval or rejection of the proposed transaction. Also, pre-paidcard processor computer 532 can, for example, write data to a databaseto record a purchase or other transaction, to debit available funds froman account associated with the pre-paid card 537, and to credit directlyor indirectly a retailer 540 for a purchase. In addition to purchaseauthorization, embodiments of the present invention also can includecustomer inquiries into recent transactions or a balance inquiry, i.e.,an amount of remaining value associated with the pre-paid card.

As illustrated in FIGS. 5 and 13, embodiments of the present inventioninclude, for example, a computer system for loading loan proceeds to apre-paid card. The computer can be associated with a pre-paid cardprocessor 531 and configured as a pre-paid card processor computer 532,951. The pre-paid card processor computer 532, 951 can be incommunication through an electronic communications network 551 with abank computer 502 positioned to pend and then credit loan proceeds for apre-paid card 50. The pre-paid card processor computer can include aprocessor 535 positioned to activate a pre-paid card responsive to arequest on behalf of a borrower, to transmit a notice of an activationof the pre-paid card to the bank computer, and to load pending loanproceeds to a pre-paid card. The pre-paid card processor computer caninclude an input/output unit 536 for transferring data between theprocessor 535 and the bank computer 502. The pre-paid card processorcomputer can also include a memory 534 having stored therein programproduct 538, stored on a tangible computer memory media and operable onthe processor. The program product includes a set of instructions 955that, when executed by the processor, cause the computer to load loanproceeds to a pre-paid card by performing various the operations. Theoperations can include, for example, activating by the pre-paid cardprocessor computer a pre-paid card responsive to an activation requeston behalf of a borrower 957. The operations can include, for example,transmitting to the bank computer by the pre-paid card processorcomputer notice of an activation of a pre-paid card associated with thepre-paid card processor responsive to an activation of the pre-paid card959. The operations can include, for example, loading pending loanproceeds by the pre-paid card processor computer to a pre-paid card bychanging a physical structure of the pre-paid card to reflect a presenceof funds sufficient up to a specified amount for purchase of goods orservices responsive to the bank computer crediting the pending loanproceeds to the pre-paid card processor computer for the activatedpre-paid card so that the loan proceeds are released to the approvedborrower and are immediately available to thereby convert the pre-paidcard into a loan delivery apparatus 961. Embodiments further includecomputer system wherein the activation request on behalf of the borrowerincludes an indication that the activation request is responsive to apending loan.

Embodiments further include, for example, a pre-paid card transactioncomputer to load loan proceeds to a pre-paid card, including loanproceeds pending the activation of the pre-paid card. The pre-paid cardtransaction computer can be associated with a pre-paid card processor asdescribed herein, as understood by those skilled in the art. Thepre-paid card transaction computer can include a processor positioned toactivate a plurality of pre-paid cards responsive to a request on behalfof a borrower and to load pending loan proceeds to the pre-paid card.The pre-paid card transaction computer can include an input/output unitfor transferring data between the processor and a bank computer. Thepre-paid card transaction computer can include a memory having storedtherein a computer program product, stored on a tangible computer memorymedia, operable on the processor, the computer program productcomprising a set of instructions that, when executed by the processor,cause the computer to load loan proceeds to the pre-paid card byperforming the various operations. The operations can include activatingby the processor the pre-paid card responsive to an activation requeston behalf of a borrower. The operations can include indicating in memorythe pre-paid card to be used with a loan transaction pending theactivation of the pre-paid card. The operations can include loadingpending loan proceeds by the processor to a pre-paid card responsive tothe indication in memory of the pre-paid card to be used with the loantransaction so that the loan proceeds are released to an approvedborrower and are immediately available to thereby convert the pre-paidcard into a loan delivery apparatus. The operation of loading pendingloan proceeds by the processor to a pre-paid card can include, forexample, changing a physical structure of the pre-paid card to reflect apresence of funds sufficient up to a specified amount for purchase ofgoods or services. The operation of loading pending loan proceeds by theprocessor to a pre-paid card can include, for example, updating atangible computer memory storing a pre-paid card account associated withthe pre-paid card to reflect a presence of funds sufficient up to aspecified amount for purchase of goods or services. The operation ofindicating in memory the pre-paid card to be used with the loantransaction pending the activation of the pre-paid card can include, forexample, transmitting to the bank computer by the pre-paid cardtransaction computer notice of an activation of a pre-paid cardresponsive to an activation of the pre-paid card, the notice of theactivation of the pre-paid card including information identifying theapproved borrower and the pre-paid card. For example, the loan proceedscan be available to the approved borrower through the pre-paid cardafter a delay of one-half of one second to one minute after the pre-paidcard transaction computer activates the pre-paid card, according toembodiments of the present invention. This delay can include the networkdelays and processing delays on and between the various computers. Inaddition, the approved borrower can purchase the pre-paid card at aretailer so that the borrower can, after the brief delay, use thepre-paid card at a point-of-sale for a purchase of goods or services.The pending loan proceeds can be, for example, responsive to the bankcomputer receiving authorization from a lender computer to credit loanproceeds from the lender to an approved borrower on a pre-paid card sothat release of the loan proceeds is pending an activation of a pre-paidcard.

Embodiments further include, for example, a pre-paid card transactioncomputer to load loan proceeds to a pre-paid card. The pre-paid cardtransaction computer can be, for example, in communication with afinancial institution computer positioned to pend and then credit loanproceeds for a pre-paid card. The pre-paid card transaction computer caninclude, for example, a processor positioned to activate a pre-paid cardresponsive to a request on behalf of a borrower, to transmit a notice ofan activation of the pre-paid card to the financial institutioncomputer, and to load pending loan proceeds to the pre-paid card. Thepre-paid card transaction computer can include, for example, aninput/output unit for transferring data between the processor and thefinancial institution computer. The pre-paid card transaction computercan include, for example, a memory having stored therein a computerprogram product, stored on a tangible computer memory media, operable onthe processor, the computer program product comprising a set ofinstructions that, when executed by the processor, cause the computer toload loan proceeds to the pre-paid card by performing variousoperations. The operations can include, for example, activating by theprocessor the pre-paid card responsive to an activation request onbehalf of a borrower. The operations can include, for example,transmitting to the financial institution computer by the pre-paid cardtransaction computer notice of an activation of a pre-paid cardresponsive to an activation of the pre-paid card. The operations caninclude, for example, loading pending loan proceeds by the processor tothe pre-paid card responsive to the financial institution computercrediting the pending loan proceeds to the pre-paid card transactioncomputer for the activated pre-paid card so that the loan proceeds arereleased to an approved borrower and are immediately available tothereby convert the pre-paid card into a loan delivery apparatus. Theoperation of loading pending loan proceeds by the processor to thepre-paid card can include, for example, changing a physical structure ofthe pre-paid card to reflect a presence of funds sufficient up to aspecified amount for purchase of goods or services.

Embodiments further include, for example, a pre-paid card transactioncomputer or a bank computer to load a plurality of loan proceeds to aplurality of pre-paid cards. The pre-paid card transaction computer canbe, for example, in communication with a financial institution computerpositioned to credit loan proceeds for a plurality existing pre-paidcards. The pre-paid card transaction computer can include, for example,a processor positioned to load a plurality of loan proceeds to aplurality of existing pre-paid cards and an input/output unit fortransferring data between the processor and the financial institutioncomputer. The pre-paid card transaction computer can include, forexample, a memory having stored therein a computer program product,stored on a tangible computer memory media, operable on the processor,the computer program product comprising a set of instructions that, whenexecuted by the processor, cause the computer to load a plurality ofloan proceeds to a plurality of existing pre-paid cards by performingvarious operations. The operations can include, for example, loading oneof the plurality of loan proceeds by the processor to one of theplurality of existing pre-paid cards responsive to the financialinstitution computer crediting the one of the plurality of loan proceedsto the pre-paid card transaction computer for the one of the pluralityof existing pre-paid cards so that the one of the plurality of loanproceeds is released to an approved borrower and is immediatelyavailable to thereby convert the one of the plurality of existingpre-paid cards into a loan delivery apparatus. The operation of loadingone of the plurality of loan proceeds by the processor to one of theplurality of existing pre-paid cards can include, for example, changinga physical structure of the one of the plurality of existing pre-paidcards to reflect a presence of funds sufficient up, to a specifiedamount for purchase of goods or services. The one of the plurality ofloan proceeds can be, for example, available to the approved borrowerthrough the one of the plurality of existing pre-paid cards after adelay of one-half of one second to one minute after the financialinstitution computer credits the one of the plurality of loan proceedsto the pre-paid card transaction computer for the one of the pluralityof existing pre-paid cards. For example, the approved borrower and thefinancial institution may have no business relationship prior to theloan transaction wherein the financial institution computer credits theone of the plurality of loan proceeds to the pre-paid card transactioncomputer for the one of the plurality of existing pre-paid cards.

Embodiments of the claimed invention also include a computer program,associated with a bank computer 501, stored on a tangible computermemory media 504, operable on a computer, and used to advance loanproceeds to a pre-paid card account 537. The computer program productcan include various modules, or components, where each module isassociated with a computer, stored on a tangible computer memory mediaand operable on a computer, and includes a set of instructions that,when executed by the computer, cause the computer to perform variousoperations. For example, the computer program product can include acommon interface module associated with the bank computer 501, stored ona tangible computer memory media 504 and operable on a computer; thecommon interface module can include a set of instructions that, whenexecuted by the computer, cause the computer to perform the operation ofreceiving data for an approved loan from one or more underwritercomputers, where the proceeds from the loan are destined for a pre-paidcard account 537. The common interface covers, works with, or feedsvarious pre-paid card processors, as understood by those skilled in theart. The computer program product can include, for example, a pre-paidcard taxonomy module associated with the bank computer 501, stored on atangible computer memory media 504 and operable on a computer. Thepre-paid card taxonomy module can include a set of instructions that,when executed by the computer, cause the computer to classify pre-paidcards according to an associated pre-paid card processor, to maintainand manage a database of pre-paid card files that associates pre-paidcards with pre-paid card processors, and to determine a pre-paid cardprocessor associated with the pre-paid card account from loan dataprovided through the common interface module from the underwritercomputer responsive to a pre-paid card serial number. The computerprogram product 504 can include, for example, a format translator moduleassociated with the bank computer 501, stored on a tangible computermemory media and operable on a computer. The format translator modulecan include a set of instructions that, when executed by the computer,cause the computer to invoke the associated pre-paid card processor fora given pre-paid card responsive to the determination of the taxonomymodule, to convert the loan data received by the common interface moduleinto a processor-specific instruction format, and to communicate theconverted loan data to the pre-paid card processor to post the loanproceeds to the pre-paid card account so that a first data format isconverted into a second data format to thereby enable the posting of theloan proceeds to the pre-paid card and so that the loan application isconverted into a pre-paid card having an associated value and beingcapable of purchasing goods. The computer program product can include,for example, a reconciliation module associated with the bank computer501, stored on a tangible computer memory media and operable on acomputer. The reconciliation module can include a set of instructionsthat, when executed by the computer, cause the computer to receive andcompare data for the approved loan, e.g., flat files, or data files thathave no structural relationship as understood by those skilled in theart, from the underwriter computer, from the pre-paid card processor,and the format translator module. The reconciliation module can, forexample, converts the flat file data into structured database files tothereby reconcile the data and check for errors. In addition, thereconciliation module can, for example, produce error reports responsiveto a comparison of the structured database files.

A serial number of a pre-paid card 54 can include, for example, a BankIdentification Number (BIN) as understood by those skilled in the art.Each card number issued within an open payment network, such as, Visa,MasterCard, and others as understood by those skilled in the art,includes a Bank Identification Number. Each Bank Identification Numberis assigned to an issuer, i.e., a lending institution, by the openpayment network as understood by those skilled in the art. When the BankIdentification Number is configured with the open payment network, thepre-paid card processor, or the destination for authorization andsettlement transactions, is designate by the issuer, i.e., the lendinginstitution, as understood by those skilled in the art. According toembodiments of the present invention, the pre-paid card taxonomy modulecan utilize the Bank Identification Number portion of the serial numberof a pre-paid card to determine the pre-paid card processor.

The embodiments of the present invention also include a computer programproduct, as illustrated in FIG. 15, associated with the bank computer501, stored on a tangible computer memory media 504, operable on acomputer 501, the computer program product comprising a set ofinstructions that, when executed by the computer, cause the computer toperform various operations. The operations include generating a commoninterface for information for an approved loan to an underwritercomputer from the bank computer when proceeds from the loan are destinedfor a pre-paid card account (block 646). The operations also includedetermining a pre-paid card processor associated with the pre-paid cardaccount from the loan information provided through the common interfacefrom the underwriter to the lending institution (block 648). Theoperations further include invoking the pre-paid card processor as oneof a plurality of preselected processors available to post the loanproceeds to the pre-paid card account (block 650). The operations alsoinclude reconciling the information for the approved loan from theunderwriter computer with the information from the pre-paid cardprocessor (block 652). The operations further include providing securityservices (block 654), such as permitting only known and verifiedcomputer addresses, requiring user name and password, and other suchapplication-level and firewall-level functions, as understood by thoseskilled in the art.

This application claims priority to and the benefit to U.S. patentapplication Ser. No. 12/465,803 by Galit et al., titled “Pre-paid CardTransaction Computer to Load a Loan on a Pre-Paid Card” filed May 14,2009, which claims priority and the benefit to U.S. Provisional PatentApplication Ser. No. 61/053,056, by Galit et al., titled “System,Program Product, and Method for Loading a Loan on a Pre-Paid Card” filedMay 14, 2008, which is incorporated herein by reference in its entirety.This application also relates to: U.S. Provisional Patent ApplicationSer. No. 61/016,213, by Sorbe et al., titled “Transfer Account Systems,Computer Program Products, and Associated Methods” filed on Dec. 21,2007; U.S. Provisional Patent Application Ser. No. 61/052,454, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andMethods to Prioritize Payments from Preselected Bank Account” filed May12, 2008; U.S. Provisional Patent Application Ser. No. 61/029,975, bySorbe et al., titled “Methods To Advance Loan Proceeds On Prepaid Cards,Associated Systems and Computer Program Products” filed on Feb. 20,2008; U.S. Provisional Patent Application Ser. No. 61/042,612, by Ahlerset al., titled “System, Program Product, and Associated Methods toAuthorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 4, 2008; U.S. Provisional Patent Application Ser. No. 61/042,624,by Crowe et al., titled “System, Program Product, and Method toAuthorize Draw for Retailer Optimization” filed on Apr. 4, 2008; U.S.Provisional Patent Application Ser. No. 61/032,750, by Ahlers et al.,titled “Methods, Program Product, and System for Micro-Loan Management”filed on Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.61/060,559, by Galit et al., titled “Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Jun. 11, 2008; U.S.Provisional Patent Application Ser. No. 61/082,863, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Jul. 23, 2008, all of which are eachincorporated herein by reference in their entireties. This applicationalso relates to: U.S. patent application Ser. No. 12/338,365, by Sorbeet al., titled “Transfer Account Systems, Computer Program Products, andAssociated Computer-Implemented Methods” filed on Dec. 18, 2008; U.S.patent application Ser. No. 12/338,402, by Sorbe et al., titled“Transfer Account Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. 12/417,199, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on Apr. 2, 2009, which is no U.S. Pat. No.8,065,187; U.S. patent application Ser. No. 12/417,211, by Ahlers etal., titled “System, Program Product, and Associated Methods toAuthorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 2, 2009, which is U.S. Pat. No. 8,069,085; PCT/US09/39492, byAhlers et al., titled “System, Program Product, and Associated Methodsto Authorize Draw for Micro-Credit Attached to a Prepaid Card” filed onApr. 3, 2009; PCT/US09/39504, by Ahlers et al., titled “System, ProgramProduct, and Associated Methods to Authorize Draw for Micro-CreditAttached to a Prepaid Card” filed on Apr. 3, 2009; U.S. patentapplication Ser. No. 12/417,182, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 2, 2009; PCT/US09/39512, by Crowe et al., titled “System,Program Product, and Method to Authorize Draw for Retailer Optimization”filed on Apr. 3, 2009; U.S. patent application Ser. No. 12/338,684, byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 18, 2008;PCT/US08/87660 by Ahlers et al., titled “Computer-Implemented Methods,Program Product, and System for Micro-Loan Management” filed on Dec. 19,2008; U.S. patent application Ser. No. 12/338,712, by Galit et al.,titled “Computer-Implemented Methods, Program Product, and System toEnhance Banking Terms Over Time” filed on Dec. 18, 2008; PCT/US08/87689by Galit et al., titled “Computer-Implemented Methods, Program Product,and System to Enhance Banking Terms Over Time” filed on Dec. 19, 2008;U.S. patent application Ser. No. 12/417,162, by Ahlers et al., titled“System, Program Product, and Method For Debit Card and Checking AccountAutodraw” filed on Apr. 3, 2009; PCT/US09/39495, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Apr. 3, 2009; U.S. patent application Ser.No. 12/465,277, by Galit et al., titled “System, Program Product, andComputer-Implemented Method for Loading a Loan on a Pre-Paid Card” filedon May 13, 2009; and U.S. patent application Ser. No. 12/465,306, byGalit et al., titled “System, Program Product, and Computer-ImplementedMethod for Loading a Loan on an Existing Pre-Paid Card” filed on May 13,2009, all of which are each incorporated herein by reference in theirentireties.

A person having ordinary skill in the art will recognize that varioustypes of memory are media readable by a computer such as describedherein, e.g., borrower computer, lender computer, bank computer,pre-paid card processor computer, retailer computer, point-of-saleterminal, payroll processor, or other computers with embodiments of thepresent invention. Examples of tangible computer readable media includebut are not limited to: nonvolatile, hard-coded type media such as readonly memories (ROMs), CD-ROMs, and DVD-ROMs, or erasable, electricallyprogrammable read only memories (EEPROMs), recordable type media such asfloppy disks, hard disk drives, CD-R/RWs, DVD-RAMs, DVD-R/RWs,DVD+R/RWs, flash drives, memory sticks, and other newer types ofmemories, and transmission type media such as digital and analogcommunication links. For example, such media can include operatinginstructions, as well as instructions related to the system and themethod steps described above and can operate on a computer. It will beunderstood by those skilled in the art that such media can be at otherlocations instead of or in addition to the bank computer to storeprogram products, e.g., including software, thereon. A person havingordinary skill in the art will recognize that various types of computersand computer architectures, including, for example, distributedcomputing, cloud computing, data centers, mobile and handheld devices,and other systems, are embodiments of the present invention, and theseembodiments are intended to be included within the scope of the appendedclaims. That is, the lender computer, bank computer, pre-paid cardprocessor computer, for example, can be implemented through adistributed computing environment. Likewise, a borrower computer, forexample, can be a personal digital assistant (PDA) or a mobiletelephone.

Many modifications and other embodiments of the invention will come tothe mind of one skilled in the art having the benefit of the teachingspresented in the foregoing descriptions and the associated drawings.Therefore, it is to be understood that the invention is not to belimited to the illustrated embodiments disclosed, and that modificationsand other embodiments are intended to be included within the scope ofthe appended claims.

1. A computer associated with a financial institution defining afinancial institution computer to facilitate activating a plurality ofprepaid card accounts and to release a plurality of loan proceeds to theplurality of prepaid card accounts, the financial institution computercomprising: one or more processors; one or more input/output units; oneor more non-transitory computer-readable mediums encoded with computerprogram operable on a financial institution computer, the computerprogram comprising a set of instructions that when executed by thefinancial institution computer causes the financial institution computerto perform the operations of: converting loan data received in a firstpreselected loan processing format into a second preselected loanprocessing format to thereby be compatible with one or more of aplurality of prepaid card processors responsive to receiving the loandata from one or more of a plurality of lending institution computers inthe first preselected loan processing format, the loan data beingassociated with a plurality of approved loans approved by one or morelending institutions associated with the one or more of the plurality oflending institution computers; communicating the loan data in acompatible format to the one or more of the plurality of prepaid cardprocessors to thereby request activations of one or more of theplurality of prepaid cards accounts, the one or more of the plurality ofprepaid card processors each having a preselected processing formatbeing different format than the first preselected processing format anddifferent from each other; and releasing loan proceeds of one or more ofthe plurality of loans pending activation of the one or more of theplurality of prepaid card accounts to the one or more of the pluralityof prepaid card processors so that the loan proceeds are available toone or more of a plurality of corresponding borrowers, the releasingbeing responsive to a receiving notification from the one or more of theplurality of prepaid card processors that the one or more of theplurality of prepaid card accounts have been activated.
 2. A financialinstitution computer as defined in claim 1, wherein the computer programfurther causes the financial institution computer to perform theoperation of: notifying the one or more of the plurality of lendinginstitution computer of the release of the loan proceeds to the one ormore of the plurality of prepaid card processors.
 3. A financialinstitution computer as defined in claim 1, wherein the computer programfurther causes the financial institution computer to perform theoperation of: reconciling data received from the plurality of lendinginstitution computers and the data converted by the financialinstitution computer to thereby check for errors.
 4. A financialinstitution computer as defined in claim 1, wherein the computer programfurther causes the financial institution computer to perform theoperation of: generating fees for the financial institution for each ofthe plurality of approved loans for releasing the loan proceeds to theone or more of the plurality of prepaid card processors to therebymanage the one or more of the plurality of loans.
 5. A financialinstitution computer as defined in claim 1, wherein the computer programfurther causes the financial institution computer to perform theoperation of: generating fees for the plurality of lending institutionsfor each of the plurality of approved loans for underwriting theplurality of approved loans.
 6. A financial institution computer asdefined in claim 1, wherein the computer program further causes thefinancial institution computer to perform the operation of: invoking, bythe financial institution computer, one or more of the plurality ofprepaid card processors for one or more of a of a plurality of prepaidcard processor-specific instructions prior to converting the loan data,and wherein the loan data in the compatible format is compatible withthe one or more of the prepaid card processor-specific instructions. 7.A financial institution computer as defined in claim 1, wherein thecomputer program further causes the financial institution computer toperform the operation of: determining one or more of the plurality ofprepaid card processors to be associated with one or more of theplurality of approved loans prior to converting the loan data.
 8. Afinancial institution computer as defined in claim 7, wherein thedetermining one or more of the plurality of prepaid card processors tobe associated with one or more of the plurality of approved loans isresponsive determining one or more of the plurality of correspondingborrowers do not have an existing prepaid card.
 9. Non-transitorycomputer-readable medium encoded with computer program operable on acomputer associated with a financial institution computer to define afinancial institution computer, the computer program comprising a set ofinstructions that when executed by the financial institution computercauses the financial institution computer to perform operations of:converting loan data received in a first preselected loan processingformat into a second preselected loan processing format to thereby becompatible with one or more of a plurality of prepaid card processorsresponsive to receiving the loan data from one or more of a plurality oflending institution computers in the first preselected loan processingformat, the loan data being associated with a plurality of approvedloans approved by one or more lending institutions associated with theone or more of the plurality of lending institution computers;communicating the loan data in a compatible format to the one or more ofthe plurality of prepaid card processors to thereby request activationsof one or more of the plurality of prepaid cards accounts, the one ormore of the plurality of prepaid card processors each having apreselected processing format being different format than the firstpreselected processing format and different from each other; andreleasing loan proceeds of one or more of the plurality of loans pendingactivation of the one or more of the plurality of prepaid card accountsto the one or more of the plurality of prepaid card processors so thatthe loan proceeds are available to one or more of a plurality ofcorresponding borrowers, the releasing being responsive to a receivingnotification from the one or more of the plurality of prepaid cardprocessors that the one or more of the plurality of prepaid cardaccounts have been activated.
 10. Non-transitory computer-readablemedium as defined in claim 9, wherein the computer program furthercauses a financial institution computer to perform the operation of:notifying the one or more of the plurality of lending institutioncomputer of the release of the loan proceeds to the one or more of theplurality of prepaid card processors.
 11. Non-transitorycomputer-readable medium as defined in claim 9, wherein the computerprogram further causes a financial institution computer to perform theoperation of: reconciling data received from the plurality of lendinginstitution computers and the data converted by the financialinstitution computer to thereby check for errors.
 12. Non-transitorycomputer-readable medium as defined in claim 9, wherein the computerprogram further causes a financial institution computer to perform theoperations of: generating fees for the financial institution for each ofthe plurality of approved loans for releasing the loan proceeds to theone or more of the plurality of prepaid card processors to therebymanage the one or more of the plurality of loans, and generating feesfor the plurality of lending institutions for each of the plurality ofapproved loans for underwriting the plurality of approved loans. 13.Non-transitory computer-readable medium as defined in claim 9, whereinthe computer program further causes a financial institution computer toperform the operations of: invoking one or more of the plurality ofprepaid card processors for one or more of a of a plurality of prepaidcard processor-specific instructions prior to converting the loan data,and wherein the loan data in the compatible format is compatible withthe one or more of the prepaid card processor-specific instructions. 14.A computer-implemented method to facilitate activating a plurality ofprepaid card accounts and to release a plurality of loan proceeds to theplurality of prepaid card accounts, the method comprising: converting,by a computer associated with a financial institution to define afinancial institution computer, loan data received in a firstpreselected loan processing format into a second preselected loanprocessing format to thereby be compatible with one or more of aplurality of prepaid card processors responsive to receiving the loandata from one or more of a plurality of lending institution computers inthe first preselected loan processing format, the loan data beingassociated with a plurality of approved loans approved by one or morelending institutions associated with the one or more of the plurality oflending institution computers; communicating, by financial institutioncomputer, the loan data in a compatible format to the one or more of theplurality of prepaid card processors to thereby request activations ofone or more of the plurality of prepaid cards accounts, the one or moreof the plurality of prepaid card processors each having a preselectedprocessing format being different format than the first preselectedprocessing format and different from each other; and releasing, byfinancial institution computer, loan proceeds of one or more of theplurality of loans pending activation of the one or more of theplurality of prepaid card accounts to the one or more of the pluralityof prepaid card processors so that the loan proceeds are available toone or more of a plurality of corresponding borrowers, the releasingbeing responsive to a receiving notification from the one or more of theplurality of prepaid card processors that the one or more of theplurality of prepaid card accounts have been activated.
 15. Acomputer-implemented method as defined in claim 14, the method furthercomprising: notifying, by the financial institution computer, the one ormore of the plurality of lending institution computer of the release ofthe loan proceeds to the one or more of the plurality of prepaid cardprocessors.
 16. A computer-implemented method as defined in claim 14,the method further comprising: reconciling, by the financial institutioncomputer, data received from the plurality of lending institutioncomputers and the data converted by the financial institution computerto thereby check for errors.
 17. A computer-implemented method asdefined in claim 14, the method further comprising: invoking, by thefinancial institution computer, one or more of the plurality of prepaidcard processors for one or more of a of a plurality of prepaid cardprocessor-specific instructions prior to converting the loan data, andwherein the loan data in the compatible format is compatible with theone or more of the prepaid card processor-specific instructions.
 18. Acomputer-implemented method as defined in claim 14, the method furthercomprising: determining, by the financial institution computer, one ormore of the plurality of prepaid card processors to be associated withone or more of the plurality of approved loans prior to converting theloan data.
 19. A computer-implemented method as defined in claim 18,wherein the determining one or more of the plurality of prepaid cardprocessors to be associated with one or more of the plurality ofapproved loans is responsive determining one or more of the plurality ofcorresponding borrowers do not have an existing prepaid card.
 20. Acomputer-implemented method as defined in claim 14, the method furthercomprising: generating, by the financial institution computer, fees forthe financial institution for each of the plurality of approved loansfor releasing the loan proceeds to the one or more of the plurality ofprepaid card processors to thereby manage the one or more of theplurality of loans, and generating, by the financial institutioncomputer, fees for the plurality of lending institutions for each of theplurality of approved loans for underwriting the plurality of approvedloans.